Obama Care passes and within hours of the law being signed by the President reports begin to surface from American businesses about the unintended costs. Billions in hidden costs that will mean jobs and kill the economy.
ATT reports that Obama Care will cost the company $1 Billion dollars in the 1st 13 weeks. http://www.business-standard.com/india/news/healthcare-law-to-cost-att-1-billion/389937/
The list grows rapidly, the bill will cost Catapillar $100 Million in the 1st quarter, http://www.manufacturing.net/News-Caterpillar-Health-Care-Overhaul-To-Cost-100M-032510.aspx?menuid=264 , John Deere Company announces $150 Million 1st quarter costs, http://www.marketwatch.com/story/att-sees-1-billion-write-down-tied-to-health-law-2010-03-26, AK Steel, Valero Energy, Verizon and 3500 other Companies follow suit and announce hundreds of billions in unintended costs associated with Obama Care. http://blogs.marketwatch.com/election/2010/03/26/is-health-law-already-hurting-business-maybe-maybe-not/ . Medtronic warns of a possible 1000 layoffs. Verizon warns retires it may have to cut retiree health care benefits.
Stop this! This must be stopped! Stop it now, shouts Representative Henry Waxman, Chairman of the House Government Reform and Oversight Committee. People can’t be allowed to report about the huge financial burdens this new Health Care plan is creating ….. they must be stopped now …. Stop it! Stop it! Stop it now, shouts the Chairman. http://en.wikipedia.org/wiki/Henry_Waxman
Chairman Waxman thought and thought and thought and then he knew what he would do …. make these companies appear at a Congressional Hearing and answer his questions …… so he sent out letters …..
What was that reference to the SEC or Security and Exchange Commission? Waxman wrote, “ATT stated in its March 26, 2010 “filing” with the Securities and Exchange Commission that it intends to take a charge of approximately $1 billion in 2010.”
A filing? What does he mean by a filing?
A ”filing” is simply a “report”, in this instance a report mandated by Waxman and Congress itself.
In 2002 the House of Representatives and the U.S. Senate overwhelming passed a law called the Sarbanes – Oxley Act, or SOXs as Congress calls it. http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act
What do I mean by “overwhelming passed”, well the law passed in July 2002 by votes of 423 to 3 in the House of Representatives and passed in the Senate 99 – 0. What do they mean when they say “bi-partisan”? Sarbanes-Oxley was bi-partisan.
What does Sarbanes-Oxley mandate?
The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation’s securities markets. http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act
Specifically, “Title III consists of eight sections and mandates that senior executives take individual responsibility for the accuracy and completeness of corporate financial reports. It defines the interaction of external auditors and corporate audit committees, and specifies the responsibility of corporate officers for the accuracy and validity of corporate financial reports. It enumerates specific limits on the behaviors of corporate officers and describes specific forfeitures of benefits and civil penalties for non-compliance. For example, Section 302 requires that the company’s “principal officers” (typically the Chief Executive Officer and Chief Financial Officer) certify and approve the integrity of their company financial reports quarterly”. http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act
Quarterly reports? To be filed with the SEC? When is the end of the 1st quarter of 2010? Today, March 31, 2010? So the reports Waxman writes about were filed all of 6 days early? The reports, as Waxman writes, were filed on March 26, 2010. Shame, shame, shame – the Companies completed filings required by a law passed by Congress.
Let me see if I get this.
Congressman Waxman votes on and passes Obama Care without reading what he is signing or understanding what the law does. Waxman doesn’t know about the billions in taxes in the “new” health care law? Then why did he vote to pass the law?
Waxman, who has been in Congress since 1975, particpated in passing Sarbanes-Oxley. Wanna bet he didn’t read that law either?
So, Waxman passed the law raising billions in new taxes and he also passed the law that requires American Companies to file reports with the SEC outlining their business expenses and expected profits and to report these things on a quarterly basis under penalty of criminal prosecution.
So a guy who passed the law that requires the reporting and the same guy who passed the law that created the taxes being reported on, calls a hearing …. to what ….. prevent the required reporting.
What a waste of time and money – no wonder we have a 20 trillion dollar national debt! (It isn’t quite $20 trillion yet – but by the time I fininish typing it well could be $20 trillion).
Does anyopne really think this guy is smart enough to solve the Country’s problems or is he one of the group that is creating the problems that is ruining the economy and costing us millions of jobs and home foreclosures.
Sarbanes – Oxley reporting is “apolitical” or without politics. Accountants complete the reports using Government designed and mandated report formats ….. The SEC reads the reports, the IRS reads the reports and investors read the reports – they are not secret reports they are “public reports”.
Can’t Waxman read and understand the reports he created – he helped pass the law and he doesn’t understand the reports it requires.
Congressional Hearings? What a waste of taxpayer money. Waxman will do anything but take responsibility … responsibility for the economy, for the Housing mess, for foreclosures. Having hearings over Sarbanes-Oxley “filings” makes as much sense as having taxpayers report for hearings when they file their taxes and report that they owe money and mail in their checks. The Sarbanes-Oxley reports – report that the Companies will owe more in “health care taxes”, taxes that will really be paid for by the retirees receiving the benefits.
Waxman has been in Congress for 35 years. The bottom fell out of our economy after he and fellow Californian, Nancy Pelosi, took over leadership positions in the Democratic Party
Waxman represents a District in California that includes Hollywood. Prior to coming to serve in Congress he was a State Assemblyman in California.
What Waxman helped do to bankrupt California, he is now trying to do to the whole United States.
Waxman’s theories didn’t work in Califonia, they won’t work in Washington.
The “change” mandated by Obama Care hurts the retirees, not the Companies invloved.
Obama lied – he said you “could keep the coverage you have” and then he taxed the Companies for giving you the coverage you earned.
We were not suppose to learn about this …. Sarbanes-Oxley had the unintended effect of bringing these changes out into the open
UPDATE: 3500 Businesses report $250Billion in “hidden costs” – How many jobs will that mean?
April 15, 2010: Waxman Cancels Hearing To Grill Companies On Tax Hit From Overhaul
Arcane accounting rules don’t usually make for Congressional fireworks. But we were really looking forward to a scheduled clash next week between Rep. Henry Waxman (D-CA) and a bunch of companies that said the new health law is going to cost them big time.
Alas, the hearing was cancelled. How come? When congressional staffers took a look at the companies’ books, they concluded their financial filings making provision for higher future taxes were legit.
AT&T, Verizon, Caterpillar, and Deere & Co. made waves when they informed investors and the Securities and Exchange Commission that they would take big hits because the health law eliminates a tax deduction on federal subsidies that help defray the cost of drug benefits for retirees.
Heavy equipment maker Caterpillar said it would take a $100 miilion charge in the first quarter of this year. AT&T said its charge would amount to $1 billion.
Waxman didn’t buy it, launched an investigation and sent letters to Caterpillar and the other firms demanding an explanation. Now, the accountants say the companies’ charges are by the book.
Waxman is such an embrassment – didn’t read the law before he voted on it and then acted like an ass by scheduling the hearings in the first place.
There are competent Liberals out their that the far left could elect to public office – why does the far left keep electing clowns like this guy.